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Ashland (ASH) to Hike Price upto 15% to Cover Higher Costs

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Ashland Global Holdings Inc. (ASH - Free Report) recently announced that it will increase prices up to 15% or as contracts permit, effective Apr 1, 2022. This will be done to cover general inflation related to raw materials, energy, freight and labor.

The price hike includes all Ashland products across all the markets and applications the company serves—including life sciences, personal care, specialty additives and intermediates.

Shares of Ashland have increased 9.8% in the past year compared with a 16% fall of the industry.

Zacks Investment Research
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Ashland’s adjusted earnings for the first quarter of fiscal 2022 came in at 88 cents per share, up from the year-ago quarter’s figure of 69 cents. It topped the Zacks Consensus Estimate of 87 cents.

The company’s sales rose around 9% year over year to $512 million, lagging the Zacks Consensus Estimate of $512.7 million. The top line was driven by strong demand across the company’s core global end markets, higher pricing and contributions from the Schulke& Mayr acquisition.

In its last earnings call, Ashland stated that it expects sales in the range of $2.25-$2.35 billion for fiscal 2022. It also anticipates adjusted EBITDA between $550 million and $570 million.

The company noted that it sees underlying demand to remain strong and expects its pricing actions to cover the anticipated inflation. It also projects the current shipping challenges to continue in the coming quarters. The company is committed to undertaking further measures to recover any additional cost inflation. It will also continue to build inventories in major regions to mitigate supply-chain and shipping headwinds.

Ashland Global Holdings Inc. Price and Consensus

 

Ashland Global Holdings Inc. Price and Consensus

Ashland Global Holdings Inc. price-consensus-chart | Ashland Global Holdings Inc. Quote

 

Zacks Rank & Key Picks

Ashland currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .

Mosaic has a projected earnings growth rate of 125% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 33.3% upward in the past 60 days.

Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 119.9% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AdvanSix has a projected earnings growth rate of 64.8% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 58% upward in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 23.6%. ASIX has surged 112.1% in a year. The company flaunts a Zacks Rank #1.

Allegheny, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days.

Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 22.7% in a year.

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